Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A chemical plant manufactures a batch of 50 000 units. Direct materials cost $400 000. Direct labour amounts to 1000 hours at a cost of $60 000, and overheads are absorbed at $60 per direct labour hour. What is the cost of one unit?

  • A$8.00
  • B$9.20
  • C$10.40
  • D$14.00

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